Everything is twice its normal size on my mac?

Everything from the top bar, folders, the top part of safari, and the whole settings app. Also when I first turn on the mac, the apple is twice the size, and the circles with your pictures in them(before you log in). The only thing that is its normal size is the dock. i'm running lion 10.7.2. I bought the mac a month ago. Please help. Sorry for my lack of mac terms btw.

There are many ways you resize things.

Lets start with System Preferences > Displays and ensure it is set to the highest resolution, (the option at the top of the list)

Thank You!